The New AEO Paradigm - Aventri

The New AEO Paradigm

Lars Karlsson/Barry Luke

Global AEO Conference – Kampala, Uganda

15 March 2018

2WE ARE GLOBAL MARKET LEADERS ON AEO

3KGH – Your partner for Trade & Customs compliance

ABOUT KGH

KGH in Brief – Global experience

KGH Projects

KGH network of associated experts

KGH has extensive experience of global projects and has a network consisting of 125 recognized international Customs experts throughout the world. Customs

is international by nature and at KGH we find it extremely valuable to have local “on the ground” knowledge about the overseas trading partners.


- YOU ONLY IDENTIFY YOURSELF ONCE

- YOU SEND ONE SINGLE SET OF INFORMATION

- YOU SEND IT ONCE

- YOU GET ONE SINGLE ANSWER BACK

- YOU GET RELEASE OF GOODS WITHIN MINUTES

- THERE IS ONE AGENCY AT BORDER WORKING FOR ALL

- YOU PAY ONLY ONCE PER MONTH

- YOU ALWAYS PAY CORRECT

- YOU NEVER GET PENALTIES

- YOU HAVE SAME TREATMENT EVERYWHERE

- YOU HAVE ONE SINGLE CONTACT IN GOVERNMENT

THE KGH VISION

Imagine


CAN IT BE DONE?

MORE THAN 1000 AGENCIES IN ONE

DECISION MANAGED AUTOMATICALLY

IN 95%OF THE CASES

BASED ON AN AEO PLATFORM

EXISTS SINCE MORE

THAN 15 YEARS


The First AEO Blueprint

1998


1998-2000 Development

2000 Pilot

2001 Launch

- 12 months: 32 %

- 24 months: 44 %

2002 StairSec (security)

Today 68 % of flow is AEO

Sweden ranked #1 in WB DB

Goal/KPI:

To save 20 % of costs for

business

Result: 47-63 % savings

The Stariway


More predictability More speed

Lower cost Better service

Four types of benefits

Compliance & Security All modes of Transport All Procedures All Actors in the Supply Chain

UAE AEO - a Holistic Program

http://www.kghcustoms.com/sv/default.aspx

http://www.kghcustoms.com/sv/default.aspx


10 AEO PRINCIPLES

1. Voluntary partnership

2. Open for all stakeholders of the supply chain

3. Includes Compliance, Facilitation & Security/Safety

4. 100% electronic and paperless

5. Promotes Compliance Improvement (on both sides)

6. Provides real benefits for all partners

7. Consists of Validation AND Management/Monitoring

8. Developed for Single Government AEO Status AEO-SW) and for AEO-SMEs

9. Designed for Mutual Recognition

10.Includes comprehensive measurement and KPIs

¨The AEO/TTP Principles


The AEO Process Model

AEO PROCESSES

ACCREDITATION MANAGEMENT & MONITORINGA

PP

LIC

AT

ION

VA

LID

AT

ION

CE

RT

IFIC

AT

ION

MANAGEMENT

MONITORING & EVALUATION

- LEGISLATION

- ORGANIZATION

- OPERATIONAL MODEL

- TRAINING & CHANGE MANAGEMENT

- STANDARD OPERATIONAL PROCEDURES

- IT SUPPORT


Predictability Speed

Cost Service

Four types of benefits

SECOND WAVE OF BENEFITSADDITIONAL ADVANTAGES


PREDICTABILITY


HOW TO GUARANTEE AEO SUCCESS ?


KEY SUCCESS FACTORS• Holistic integrated approach in design

• Early involvement of industry, find Ambassadors

• Get volumes early

• New skills and competencies required within Customs

• Project vs Operations Access (Operational Model)

(Different staffing for project & pilot)

• New Risk Management Model for AEO

• Benefits outnumbering cost

• Change Management, Change Management

• IT and technology support needed, but

• Use Innovative solutions

• Continued development

• Structured communication strategy and effort

LESSONS LEARNED


All stakeholders

Solid processes

National MRA Model

Innovative Programme

AEO/SW

SME

Single Government AEO

NEW

PARADIGM

International Standards & Best Practices

Compliance/Security

Good benefit package


Why compliance?

If you think

compliance is

expensive, try non-

compliance.

Deputy Attorney General

Paul McNulty

“


SAQAEO

Application

Validation

Plan

Validation

Report

Control

Plan

Application

ProcessValidation Process

MOUAEO

Certificate

Certification Process

Validation

AEO360 for Government

Monitoring & Re-validation

Reports &

Dashboards

Updated

Control Plan

Validation

Report

KAM

CommunicationBenefits

implementation

Controls the full AEO Process

Enables the creation and processing of AEO artefacts – application form , SAQ, validation plan, validation

report etc…

Holds a record of all activity and communication between Customs and Companies


AEO Portal for companies

For Customs to PROMOTE and EXPLAIN:

Information & Guidance

AEO announcements from Customs

Portal Registration

For AEO Applicants:

AEO Application submission

Self-Assessment questionnaire submission

KAM communication

MOU review and acceptance

For AEO Certified companies:

AEO Dashboard

Communication between Customs and the AEO company

throughout continuous monitoring and Re-validation


AEO Customs ManagementApplication Review and Approval

AEO application submitted online

2-stage approval process

Accept or Reject application or return

for correction


Self Assessment

SAQSELF-ASSESSMENT

QUESTIONNAIRE


Risk Assessment Validation Plan Validation Report

SAQ is risk assessed and a validation

plan is produced validation visits

scheduled

Validation notes and results recorded

Supporting documents uploaded

Validation Report generated from results

Issue Management


Certification

Detailed Control Plan created and approved

MOU agreed

Benefits are assigned

AEO Certificate awarded

Company informed in the Portal and by email and/or formal letter


Continuous monitoring and re-validation

Integration with Customs systems and Single

Window systems allows Customs to monitor

company behaviour

Companies can be revalidated periodically

Customs Key Account Manager keeps track of the

control plan

Any issues arising can be recorded and a

mitigation plan put in place

Measurement of benefits is available to Customs

and the company

AEO360for Business

Validation and Monitoring Service

for AEO Companies

AEO360 for Business is a software service provided by KGH

Customs Services

Designed to guide companies through the AEO Validation process and, once they are certified, help them maintain their AEO status

• Store and organise information during the AEO validation

process

• Maintain that information after AEO certification and submit

regular reports to Customs

AEO360for Business

Validation and Monitoring Service

for AEO Companies

AEO360for Business

AEO Information and Reporting

AEO information stored in the system is organised around the AEO Self Assessment

Questionnaire (SAQ), configured based on Customs Administration requirements

Information is version controlled and companies can create new revisions of the AEO report for Customs

AEO360for Business

Compliance Matrix

Responsible

person(s)Risks

AEO Monitoring

Plan TasksSAQ entries

Business Process

AEO information is arranged in a ‘compliance matrix’, linking business areas or processes to people with responsibility / risks / monitoring plan tasks and SAQ entries

AEO360for Business

Business Partner Security

Declarations

With AEO360, an AEO company can monitor the security and safety

standards of their supply chain business partners and collect

Security Declarations

Thank you

32

If you have any questions about AEO360 please visit our exhibition stand:

Booth 13 KGH Border Services

or contact us at:

www.kghborders.com

[email protected]

Mr. Lars KarlssonPresident KGH Border ServicesMobile: +46 [email protected]

Mr. Barry LukeAEO360 Project ManagerMobile: +44 7803 610 [email protected]

The New AEO Paradigm - Aventri

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